Central banks may need to think about monetary policy in a way that would seek to ______________ the effects of asset price bubbles and leverage cycles on the economy.
a. moderate
b. eliminate
c. increase
d. encourage
a. moderate
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The default effect
A. refers to the observation that people tend to value something more highly when they own it than when they don't. B. refers to the observation that people tend to value something more highly when they don't own it than when they do. C. refers to the fact that when confronted with many alternatives, people sometimes avoid making a choice and end up with the option that is assigned as a default. D. refers to the observation that people do not have a strong attachment to the status quo.
Why might Congress actually prefer the higher rate of inflation that might result from deficit spending to higher taxes and/or a cut in government spending?
What will be an ideal response?
Refer to the given data. If the wage rate is $11 and Manfred's only fixed input is capital, the total cost of which is $30, then what will be his economic profit?
Answer the question on the basis of the following information for Manfred's Shoe Shine Parlor.
Assume Manfred hires labor, its only variable input, under purely competitive conditions. Shoe
shines are also sold competitively.
A. $62.
B. $42.
C. $28.
D. $32.
Which type of income contributes the smallest share to total income in the U.S.?
A. Wages B. Interest C. Rent D. Profits